With the continuous development in the field of information technology, the span of skills that artificial intelligence exhibit keeps on expanding wider and wider. Now, with the mode on trading foreign currency through the Internet becoming the main means of trading, artificial intelligence has now penetrated this field with automated forex trading. Forex autotrading, as some may also call it, is a trading strategy where buying or selling of a pair of currencies is automated by using a program whose functions are designed based on certain trading strategies. Usually, a forex trading program would do its buying or selling when certain preset criteria are met by the conditions of the market. This means of trading in the foreign exchange market is usually used by traders who have a significantly higher rate of trading and volume compared to the average trader.
The trading strategy used by one automated forex trading program will vary from that of another. The variety of strategies being used can vary as much as the variations between trading styles of real people have. The variation is usually caused by the programmer who designed the software. Depending on his preference, research, or beliefs, the programmer may include or omit certain indicators in the market, all of which could guide the program in deciding whether to buy or sell a pair of currencies at a certain point. Despite the wide variability, the inclination of the programs is always toward technical analysis, which is the use of mathematical indicators in deciding the move of a certain trader in the market. So, if you are more inclined to side with the fundamental analysis techniques, using forex autotrading may not be the option for you. This is because usually, once you have given the software control over your trading accounts, chances are likely that the program might have already made its move before you have decided to interfere.
If you still want to have control over you account, it is recommended that you find a forex autotrading program that will need your approval first before making its move. Although the disadvantage of this is that you may lag behind the trend if you missed out on approving the move at a critical point in the trend. All in all, the greatest advantage that automated forex trading programs can do for you is that it can do both the trading and analysis for you while you sleep on your money.
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How You Can Make Your Automated Forex Trading System Work for You
Forex is one of the hardest markets to earn a positive return on investment in the world, but that does not mean that you can find success in this unique market. Forex strategies are commonly found all over the Internet, on various forums, blogs, and chat rooms. However, it is well-known that publicized automated Forex trading systems are typically used and abused until the point of no return. Eventually, they will become the general knowledge of the market and no one will be able to make a profit with a particular strategy.
To make automated Forex trading systems work for you, there are a few things to keep in mind. The very first, and arguably the most controversial, is to keep your Forex strategies to yourself. Don't talk to anyone! Sure, you might have some friends that you like to swap stories and collaborate on strategies with, but if you find a particular strategy that works extremely well for you, your best security measure is to shut your mouth. Don't say a word. Money can do funny things even to the best of friends, so telling your friend a profitable strategy might lead to him either scaling and profiting, or selling it and profiting. You want neither of these options to happen, and the only way to ensure that is to keep it quiet.
Once you find a strategy that is working for you and you kept it quiet, the next thing you should do is constantly refine and tune your strategy. No strategy is perfect on the first go around, and many of them can be significantly improved over many iterations. The beauty of Forex and automated trading is that you have many situations and instances where you can refine the system. Even if refining your system means only earning a couple extra pips per day, it's worth it. Those pips can add up to huge sums of money in the long run, provided your strategy works over the course of weeks, months, or even years.
Another critical tip to maintaining the health and profitability of your automated trading system is to control your emotions. If you know without a doubt that your system is profitable, you should not be worried about down days or unlucky stretches of time. Deep down in your heart you'll know that it is just an unlucky streak and you will climb out of it sooner or later. The last thing you want to do is ditch your entire trading system because your emotions have gotten out of control.
To make automated Forex trading systems work for you, there are a few things to keep in mind. The very first, and arguably the most controversial, is to keep your Forex strategies to yourself. Don't talk to anyone! Sure, you might have some friends that you like to swap stories and collaborate on strategies with, but if you find a particular strategy that works extremely well for you, your best security measure is to shut your mouth. Don't say a word. Money can do funny things even to the best of friends, so telling your friend a profitable strategy might lead to him either scaling and profiting, or selling it and profiting. You want neither of these options to happen, and the only way to ensure that is to keep it quiet.
Once you find a strategy that is working for you and you kept it quiet, the next thing you should do is constantly refine and tune your strategy. No strategy is perfect on the first go around, and many of them can be significantly improved over many iterations. The beauty of Forex and automated trading is that you have many situations and instances where you can refine the system. Even if refining your system means only earning a couple extra pips per day, it's worth it. Those pips can add up to huge sums of money in the long run, provided your strategy works over the course of weeks, months, or even years.
Another critical tip to maintaining the health and profitability of your automated trading system is to control your emotions. If you know without a doubt that your system is profitable, you should not be worried about down days or unlucky stretches of time. Deep down in your heart you'll know that it is just an unlucky streak and you will climb out of it sooner or later. The last thing you want to do is ditch your entire trading system because your emotions have gotten out of control.
5 Simple Rules For Successful Forex Trading Strategy
If you are ready for a change of path and life, forex is the way. Forex market now trades as of vicinity of 3 trillion dollars daily. Three trillion is a lot of money more than any other market, including the stock market. With this kind of liquidity comes a lot of volatility and that's where the profit is made. To make money with FOREX we need the price to move rapidly and in trends. Forex provides plenty of opportunities to do that.
Like any good Forex trading strategy your strategy should be based on sound money management.
The first real lesson I learned about Forex is that money management is the most important part of a successful forex trading system. You need to really understand that. Tell yourself that every day if you have to manage your money properly and you will be a successful Forex trader.
5 Simple Rules to Successful Forex Trading
Rule 1: Never enter a single position larger than 1% of your account size. I calculate 1% as the total amount of my open position at 100 pips. So for instance, assuming I'm using 100:1 leverage and I have an account balance of $10,000.
$10,000 / 1% = $100. I can open one 10K position. At 100 pips, this position will equal 1% of my total account balance.
Rule 2: Only close losing positions when your total drawdown is over 12%
So if you have an account balance of $10,000 you would not close any losing positions unless your total drawdown is $1200 or greater.
I enter all my trades without setting a stop loss. That's where the next rule comes in.
Rule 3: Buy low, Sell high
This is where long term analysis comes in. Look at your charts on a daily, weekly and monthly time frame. Look for major levels of resistance and support.
NEVER go long (BUY) near a daily, weekly or monthly high.
NEVER go short (SELL) near a daily, weekly, or monthly low.
SELL if price approaches a daily, weekly or monthly high.
BUY if price approaches a daily, weekly or monthly low.
I'm not talking about only trading on daily or weekly charts. I just want you to be clear that when dealing with really major levels of support and resistance you never want to trade against them.
That is one of the key elements of this forex trading strategy.
Rule 4: Hedge when necessary using high correlation pairs.
Hedging is simply a way of managing your risk. By opening a trade on a different currency pair that moves in a similar (or opposite) fashion to the pair you're currently trading you can manage your risk.
Rule 5: Take Profit When YOU Want
Remember, we are not using any stop losses. We can however use limits (take profits). I generally set my limit at around 50 pips.
I aim for 50 pips each and every day!
If I make 100 pips in a day, I will close the trading account for the remainder of the day and take a break. Remember, 100 pips is equal to 1% of your TOTAL account balance assuming you're risking 1% of your account for each position.
If you can make even 50 pips a day that's over 20% a month!
On a $10,000 account that's $2000/month consistent profits, only risking 1% in each single trade. And that's without compounding!
Patience is key
I've had positions against me over 2000 pips! While those positions were losing, I was hedging and making profits.
Sure enough, weeks or months later those same positions that were over 2000 pips against me came back. Because I had patience I was able to close those trades for a profit.
So don't panic if a position goes against you. See if there is a possibility to hedge. If there is, great. If there isn't, wait it out.
You can still make other trades while you're waiting. That's the beauty of only risking 1% per trade.
Like any good Forex trading strategy your strategy should be based on sound money management.
The first real lesson I learned about Forex is that money management is the most important part of a successful forex trading system. You need to really understand that. Tell yourself that every day if you have to manage your money properly and you will be a successful Forex trader.
5 Simple Rules to Successful Forex Trading
Rule 1: Never enter a single position larger than 1% of your account size. I calculate 1% as the total amount of my open position at 100 pips. So for instance, assuming I'm using 100:1 leverage and I have an account balance of $10,000.
$10,000 / 1% = $100. I can open one 10K position. At 100 pips, this position will equal 1% of my total account balance.
Rule 2: Only close losing positions when your total drawdown is over 12%
So if you have an account balance of $10,000 you would not close any losing positions unless your total drawdown is $1200 or greater.
I enter all my trades without setting a stop loss. That's where the next rule comes in.
Rule 3: Buy low, Sell high
This is where long term analysis comes in. Look at your charts on a daily, weekly and monthly time frame. Look for major levels of resistance and support.
NEVER go long (BUY) near a daily, weekly or monthly high.
NEVER go short (SELL) near a daily, weekly, or monthly low.
SELL if price approaches a daily, weekly or monthly high.
BUY if price approaches a daily, weekly or monthly low.
I'm not talking about only trading on daily or weekly charts. I just want you to be clear that when dealing with really major levels of support and resistance you never want to trade against them.
That is one of the key elements of this forex trading strategy.
Rule 4: Hedge when necessary using high correlation pairs.
Hedging is simply a way of managing your risk. By opening a trade on a different currency pair that moves in a similar (or opposite) fashion to the pair you're currently trading you can manage your risk.
Rule 5: Take Profit When YOU Want
Remember, we are not using any stop losses. We can however use limits (take profits). I generally set my limit at around 50 pips.
I aim for 50 pips each and every day!
If I make 100 pips in a day, I will close the trading account for the remainder of the day and take a break. Remember, 100 pips is equal to 1% of your TOTAL account balance assuming you're risking 1% of your account for each position.
If you can make even 50 pips a day that's over 20% a month!
On a $10,000 account that's $2000/month consistent profits, only risking 1% in each single trade. And that's without compounding!
Patience is key
I've had positions against me over 2000 pips! While those positions were losing, I was hedging and making profits.
Sure enough, weeks or months later those same positions that were over 2000 pips against me came back. Because I had patience I was able to close those trades for a profit.
So don't panic if a position goes against you. See if there is a possibility to hedge. If there is, great. If there isn't, wait it out.
You can still make other trades while you're waiting. That's the beauty of only risking 1% per trade.
Pros of Automated Forex Trading
With the ever increasing amount of mathematical indicators in the foreign exchange market, the capacity and capability that a trader needs to have in order to process information is also becoming deficient, not to mention that these traders also need to do things outside of the forex trading zone. Luckily, since these indicators are mathematical, there is no problem in using computers for doing the job. In fact, it is their specialty, hence the name of computers. This is what automated forex trading programs are meant to do. They are designed to execute several strategies according to the mathematical indicators that they are programmed to follow. All of these can be done by the program without the owner of the account having to tweak almost anything at all. Now, with this kind of high-powered processing capability and convenience, what else are the advantages of using this kind of strategic tool?
One of the major advantages that attracted the users of automated forex trading programs is its high capability to process very complex mathematical information. Give it whatever indicators, Fibonacci retracing, intermarket data, volume and volatility analysis, pivot points, and whatever else; a forex autotrading program can handle that. Although of course, such mathematical processing can also be done by a human trader, a computer does all of this process within a much shorter time. This kind of efficiency saves the trader the precious time to do many other things, a very invaluable resource for those who understand. Moreover, since a computer is immune against one of the human factor that plague so many traders, emotion. With only the pure rationality of a computer, it will fully rely on its computations without having to be affected by fear, greed, or pressure. This is a major advantage especially for very crucial times in trading.
Now, if you are still new to automated forex trading programs, you might be scared by the possibility that you may no longer have any control over your trading account. As for that, you don't really have to worry much; these programs can be setup where you still have influence over the activities of your account. You can also customize the trading tendencies of your program depending on your own tendencies as well. The indicators that will be used by the program can also be adjusted by including or excluding those that you think are significant, and those that you think are useless.
One of the major advantages that attracted the users of automated forex trading programs is its high capability to process very complex mathematical information. Give it whatever indicators, Fibonacci retracing, intermarket data, volume and volatility analysis, pivot points, and whatever else; a forex autotrading program can handle that. Although of course, such mathematical processing can also be done by a human trader, a computer does all of this process within a much shorter time. This kind of efficiency saves the trader the precious time to do many other things, a very invaluable resource for those who understand. Moreover, since a computer is immune against one of the human factor that plague so many traders, emotion. With only the pure rationality of a computer, it will fully rely on its computations without having to be affected by fear, greed, or pressure. This is a major advantage especially for very crucial times in trading.
Now, if you are still new to automated forex trading programs, you might be scared by the possibility that you may no longer have any control over your trading account. As for that, you don't really have to worry much; these programs can be setup where you still have influence over the activities of your account. You can also customize the trading tendencies of your program depending on your own tendencies as well. The indicators that will be used by the program can also be adjusted by including or excluding those that you think are significant, and those that you think are useless.
Are You a "Simple" Forex Trader?
There are many attributes that make a great forex trader or any trader of the financial markets for that matter. Profitable traders know that trading must be done without emotion and with an elegant, simple, and adaptable strategy if they are to be successful over the long term.
One aspect of a successful trader that many overlook completely is the simplicity of the trading strategy that is being used. It is my opinion that the simpler the trading strategy, the easier it is to gain proficiency and expertise with that strategy. Continued perfect practice of a simple strategy will drive a novice's expertise, and they will then be able to modify their strategy and mindset to create sizable monetary gains.
Having gone through the many forex trading blogs, websites, and forums, it is not hard to pick out a massive number of very complex and hard to comprehend strategies and indicators that most certainly would baffle a novice. Complexities like these offer no help to the beginning trader. As Einstein thought, "Concepts should be formulated in their simplest form, but no simpler." To me, this has always meant, "Develop an idea so that it is understandable, but without leaving out details that would make the idea incomplete."
I would give this bit of advice to aspiring or novice traders. Toss out all of the forex auto trading robots and secret black box indicators and focus your efforts on learning a basic forex strategy that has proven over time to be profitable. Once your perfect your trading approach, consider adding complexities if you can prove they help your profitability. I think you will find, though, that as you master your forex strategy, you will be subtracting ideas from your strategy rather than adding to it. Why would you do this? Once you find something that builds your account steadily, there is no reason to add to or change you methods.
There is a very easy way to test the simplicity of your forex strategy. Let a beginner look at your charts and then ask them to explain to you how the strategy works and how it can be successful. If they can grasp the general concepts of your strategy within a few minutes (entries, exits, etc), then you have a strategy that will allow you to be profitable in the financial markets for years to come.
How does one identify a simple forex strategy? Let's start with sticking with methods that have very distinct and easy to learn rules. A rule based strategy is simply a strategy that is executed based on a few simple rules.
Example: If price hits a recent resistance level, we execute a short trade. We will place our stop 20 pips below the round number. As price hits the first round number will close our trade. If price is not at least 20 pips away from our support (take profit level), we pass on the trade.
For illustration purposes, let's assume that this strategy has been profitable for many years and now we are going to use it to trade our way to financial freedom. Next, our challenge is to conquer the emotional or psychological aspects of forex trading by trading the strategy without any emotion whatsoever. All great traders are meticulous record keepers and we will practice this as well, setting the stage for future data analysis. Now that we are making money consistently with the strategy and trading without stress, it is time to increase our trading size so we can start earning a living.
You have practiced with precision, without emotion, and you have meticulously written down your trades. Let's increase our trading size now and begin to seriously go after some significant returns. You may be wondering; what time period should I expect this to happen in? For some with financial industry experience, this may take only a few weeks if their trading psychology is beyond reproach. For those with no experience with trading financial instruments, this may take weeks, months, or even years. But don't get discouraged, trading is a skill that, once learned, can provide you with a profitable and rewarding career for life.
Let's review:
Chose a forex trading strategy that is easy to comprehend and easy to execute.
Ensure your chosen strategy has only a few basic rules to follow.
After you comprehend how you will be making money with the strategy, practice the method perfectly until you can trade without fear.
Record your results so you can prove to yourself that you can trade without emotion and are consistently profitable.
Now that you are building your account without stress or emotion, you can increase your risk and the dollars you are trading.
Simplify your strategy, build your skills, repeat and grow as a trader!
Forex trading should not be (but can be) an over complex adventure. Big Brain Forex is your source for a simple and elegant trading strategy that can be used to make strong consistent gains in the forex market.
Simplicity in concept, ease of execution and commitment to your consistent profitability make Big Brain Forex a unique and honest proposition in a industry that is replete with charlatans.
One aspect of a successful trader that many overlook completely is the simplicity of the trading strategy that is being used. It is my opinion that the simpler the trading strategy, the easier it is to gain proficiency and expertise with that strategy. Continued perfect practice of a simple strategy will drive a novice's expertise, and they will then be able to modify their strategy and mindset to create sizable monetary gains.
Having gone through the many forex trading blogs, websites, and forums, it is not hard to pick out a massive number of very complex and hard to comprehend strategies and indicators that most certainly would baffle a novice. Complexities like these offer no help to the beginning trader. As Einstein thought, "Concepts should be formulated in their simplest form, but no simpler." To me, this has always meant, "Develop an idea so that it is understandable, but without leaving out details that would make the idea incomplete."
I would give this bit of advice to aspiring or novice traders. Toss out all of the forex auto trading robots and secret black box indicators and focus your efforts on learning a basic forex strategy that has proven over time to be profitable. Once your perfect your trading approach, consider adding complexities if you can prove they help your profitability. I think you will find, though, that as you master your forex strategy, you will be subtracting ideas from your strategy rather than adding to it. Why would you do this? Once you find something that builds your account steadily, there is no reason to add to or change you methods.
There is a very easy way to test the simplicity of your forex strategy. Let a beginner look at your charts and then ask them to explain to you how the strategy works and how it can be successful. If they can grasp the general concepts of your strategy within a few minutes (entries, exits, etc), then you have a strategy that will allow you to be profitable in the financial markets for years to come.
How does one identify a simple forex strategy? Let's start with sticking with methods that have very distinct and easy to learn rules. A rule based strategy is simply a strategy that is executed based on a few simple rules.
Example: If price hits a recent resistance level, we execute a short trade. We will place our stop 20 pips below the round number. As price hits the first round number will close our trade. If price is not at least 20 pips away from our support (take profit level), we pass on the trade.
For illustration purposes, let's assume that this strategy has been profitable for many years and now we are going to use it to trade our way to financial freedom. Next, our challenge is to conquer the emotional or psychological aspects of forex trading by trading the strategy without any emotion whatsoever. All great traders are meticulous record keepers and we will practice this as well, setting the stage for future data analysis. Now that we are making money consistently with the strategy and trading without stress, it is time to increase our trading size so we can start earning a living.
You have practiced with precision, without emotion, and you have meticulously written down your trades. Let's increase our trading size now and begin to seriously go after some significant returns. You may be wondering; what time period should I expect this to happen in? For some with financial industry experience, this may take only a few weeks if their trading psychology is beyond reproach. For those with no experience with trading financial instruments, this may take weeks, months, or even years. But don't get discouraged, trading is a skill that, once learned, can provide you with a profitable and rewarding career for life.
Let's review:
Chose a forex trading strategy that is easy to comprehend and easy to execute.
Ensure your chosen strategy has only a few basic rules to follow.
After you comprehend how you will be making money with the strategy, practice the method perfectly until you can trade without fear.
Record your results so you can prove to yourself that you can trade without emotion and are consistently profitable.
Now that you are building your account without stress or emotion, you can increase your risk and the dollars you are trading.
Simplify your strategy, build your skills, repeat and grow as a trader!
Forex trading should not be (but can be) an over complex adventure. Big Brain Forex is your source for a simple and elegant trading strategy that can be used to make strong consistent gains in the forex market.
Simplicity in concept, ease of execution and commitment to your consistent profitability make Big Brain Forex a unique and honest proposition in a industry that is replete with charlatans.
Discover The Mechanical Forex Trading Systems
Mechanical Forex trading systems are systems that identify potential trade opportunities for a trader to take. They are referred to as mechanical since a trader will enter the market based on the signals generated by the system in spite of what is taking place in the market. Therefore, they are a great way of keeping emotions at bay when engaging in the business of trading currencies.
A mechanical Forex trading system is usually based on the strategies of the trader. And, it is meant to ensure that a trader follows the rules of his or her strategy no matter what takes place. If you want to come up with a profitable system, you should ensure that it has the ability of identifying trends as early as possible and it also has the ability of confirming if the identified trend is valid or not.
After developing your system, it is essential to trade it in a demo account for at least two months to know how it is working. Trying your system using virtual money will assist you in perfecting it and practicing how you will use it in live market conditions. After ensuring your system adequately meets your needs and preferences in trading, remember to always stick to the rules- regardless of what takes place.
There are some essential components that your system should clearly stipulate. Some of these are the time frame you will use for trading, indicators you will use to identify trends, indicators to confirm the trend, risk management strategy, and entry and exit criteria.
When developing your system, it is beneficial to backtest it; that is, subject it to historical market data with the aim of determining whether it is profitable or not. This will ensure you fine-tune it in case it may not be working according to your expectations.
A major benefit of a mechanical Forex trading system is that it allows you to attain consistency. Most Forex traders are usually faced with the challenge of failing to plan their trades and not trading their plans; therefore, they end up losing a lot of money through avoidable mistakes. Although a trading plan is able to bring good profits, failing to keep to the trading rules can be a prerequisite to your death a Forex trader. Because no trading plan is one hundred per cent efficient, a mechanical Forex trading system make sure that you keep the rules of the game, regardless of the market conditions.
A mechanical Forex trading system is usually based on the strategies of the trader. And, it is meant to ensure that a trader follows the rules of his or her strategy no matter what takes place. If you want to come up with a profitable system, you should ensure that it has the ability of identifying trends as early as possible and it also has the ability of confirming if the identified trend is valid or not.
After developing your system, it is essential to trade it in a demo account for at least two months to know how it is working. Trying your system using virtual money will assist you in perfecting it and practicing how you will use it in live market conditions. After ensuring your system adequately meets your needs and preferences in trading, remember to always stick to the rules- regardless of what takes place.
There are some essential components that your system should clearly stipulate. Some of these are the time frame you will use for trading, indicators you will use to identify trends, indicators to confirm the trend, risk management strategy, and entry and exit criteria.
When developing your system, it is beneficial to backtest it; that is, subject it to historical market data with the aim of determining whether it is profitable or not. This will ensure you fine-tune it in case it may not be working according to your expectations.
A major benefit of a mechanical Forex trading system is that it allows you to attain consistency. Most Forex traders are usually faced with the challenge of failing to plan their trades and not trading their plans; therefore, they end up losing a lot of money through avoidable mistakes. Although a trading plan is able to bring good profits, failing to keep to the trading rules can be a prerequisite to your death a Forex trader. Because no trading plan is one hundred per cent efficient, a mechanical Forex trading system make sure that you keep the rules of the game, regardless of the market conditions.
Forex Strategy Trading Tips: The Forex Trading Every Trader Should Use
As I was planning to trade the markets today, I used my traditional pre-trading routine. I follow definitely the same routine on a regular basis and it makes it possible for me to become more prepared and effective as a trader and as a businessman.
As part of my Forex strategy trading strategies I would like to share with you a checklist that every FX trader should use in order to be more productive, more organized, and maximize your return on investment.
Check your open trades and track their efficiency: This should be the first step you take once you get to your computer. Check all of your open positions and track their performance.
In quite a few occasions stop losses need to be moved to break even or you want to take profit early because of an incoming event (such as non- farm payroll). One of my mentors once told me that "everything that matters should be assessed", this undoubtedly applies to spot trading.
Research the market before you place any new trades: I cannot accentuate enough that you need to analyze the market before you open any trades. When you are in a trade you are not the same. You are thinking about the trade all the time and you are more likely to make non-sense decisions.
At the same time, you will be hitting your head if you see a problem in the market that creates a conflict with a trade you already took.
Read the news or read a news calendar: I am most of a technical Fx trader than a fundamental currency trader; nevertheless, I still try to stay up to date in what is going on globally.
One of the tools that I employ to analyze the fundamentals of the FX Market is the news calendar. A news calendar provides you with a collection of all the important events that are happening in the international economy. A lot of them also tell you the expected influence that each specific news event will have on the Forex market.
Check your risk, stop loss, and tale profit variables: minor things can make a large difference in Forex trading and little mistakes can result on large losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That's the best way for me to guarantee that that everything is working fine and that I am going to meet my trading desires.
Never let a small mistake become a large loss: I made a choice to include this one as part of the Forex trading checklist because I have seen several traders lose money this way. We are all human and we will commit mistakes from time to time.
One of the most common errors traders commit is taking a trade on accident. I have done it and all professional Forex traders have. This is not that big of a mistake unless you let run and become a larger loss. My advice to you is that if you ever take a trade mistakenly close it immediately, never let a small mistake turn into a big and unnecessary loss!
As part of my Forex strategy trading strategies I would like to share with you a checklist that every FX trader should use in order to be more productive, more organized, and maximize your return on investment.
Check your open trades and track their efficiency: This should be the first step you take once you get to your computer. Check all of your open positions and track their performance.
In quite a few occasions stop losses need to be moved to break even or you want to take profit early because of an incoming event (such as non- farm payroll). One of my mentors once told me that "everything that matters should be assessed", this undoubtedly applies to spot trading.
Research the market before you place any new trades: I cannot accentuate enough that you need to analyze the market before you open any trades. When you are in a trade you are not the same. You are thinking about the trade all the time and you are more likely to make non-sense decisions.
At the same time, you will be hitting your head if you see a problem in the market that creates a conflict with a trade you already took.
Read the news or read a news calendar: I am most of a technical Fx trader than a fundamental currency trader; nevertheless, I still try to stay up to date in what is going on globally.
One of the tools that I employ to analyze the fundamentals of the FX Market is the news calendar. A news calendar provides you with a collection of all the important events that are happening in the international economy. A lot of them also tell you the expected influence that each specific news event will have on the Forex market.
Check your risk, stop loss, and tale profit variables: minor things can make a large difference in Forex trading and little mistakes can result on large losses. This is the reason why I always check my risk, take profit levels, and stop loss levels. That's the best way for me to guarantee that that everything is working fine and that I am going to meet my trading desires.
Never let a small mistake become a large loss: I made a choice to include this one as part of the Forex trading checklist because I have seen several traders lose money this way. We are all human and we will commit mistakes from time to time.
One of the most common errors traders commit is taking a trade on accident. I have done it and all professional Forex traders have. This is not that big of a mistake unless you let run and become a larger loss. My advice to you is that if you ever take a trade mistakenly close it immediately, never let a small mistake turn into a big and unnecessary loss!
The Best Forex Trading Strategy
It's difficult to say that one single Forex trading strategy is the best. In reality, there is no best Forex trading strategy. However, there are many good ones. Ultimately, it depends on you as an individual Forex trader.
The best currency trading strategy for you, won't necessarily be the best for another trader. The strategy you use will depend on a number of factors, such as how much time you have to dedicate to your currency trading and how much previous experience you have in trading currencies.
There are a number of common Forex trading strategies, including: scalping, news trading, range trading, swing trading, trend trading and carry trading - of course there are many more, but these are the ones that most Forex traders consider and especially when just starting out.
As a beginner, you will want to focus more on longer-term trading strategies in the Forex market. You might also not have a lot of time on your hands, because beginners tend to work full-time jobs and only trade currencies in their spare time. Although the currency market is open 24 hours a day, it is closed during the weekends and so many beginners who work full-time jobs have little time to spend on trading currencies. Because of this, they might want to focus on carry trading, for example. Using a carry trading strategy is fairly simple and is a long-term strategy that requires much less time to carry out. Carry trading is also ideal for beginners who want to minimize risk as much as possible.
On the other end of the spectrum you have strategies like scalping, which are definitely not suitable for beginners and especially not suitable for those who also have little time to spend in the FX market. Scalping is all about placing many trades per day. Scalpers focus on making modest profits on each of the tiny orders that they place, so that their modest profits accumulate to a more significant total. A lot more Forex trading experience is needed. If you want to scalp the Forex market, you should wait until you have gained some valuable experience, as well as a lot of knowledge of the market.
There are of course other factors, but when choosing a Forex trading strategy, you need to consider yourself as an individual trader. Think about what kind of time you have on your hands, how much experience you have (if any), what kind of currency pairs you will be looking to trade most, etc. As already implied, if you have little experience you should focus on more long-term strategies that allow you to minimize risk and make more modest (but more certain) profits. These long-term strategies will mean that you won't have to spend a lot of time in front of your Forex trading platform, which will allow you to study more and gain the currency trading knowledge that you need.
In conclusion, there is no best Forex trading strategy. When choosing a strategy to use, it's all about discovering which strategy will suit you and your own individual Forex trading career the best.
The best currency trading strategy for you, won't necessarily be the best for another trader. The strategy you use will depend on a number of factors, such as how much time you have to dedicate to your currency trading and how much previous experience you have in trading currencies.
There are a number of common Forex trading strategies, including: scalping, news trading, range trading, swing trading, trend trading and carry trading - of course there are many more, but these are the ones that most Forex traders consider and especially when just starting out.
As a beginner, you will want to focus more on longer-term trading strategies in the Forex market. You might also not have a lot of time on your hands, because beginners tend to work full-time jobs and only trade currencies in their spare time. Although the currency market is open 24 hours a day, it is closed during the weekends and so many beginners who work full-time jobs have little time to spend on trading currencies. Because of this, they might want to focus on carry trading, for example. Using a carry trading strategy is fairly simple and is a long-term strategy that requires much less time to carry out. Carry trading is also ideal for beginners who want to minimize risk as much as possible.
On the other end of the spectrum you have strategies like scalping, which are definitely not suitable for beginners and especially not suitable for those who also have little time to spend in the FX market. Scalping is all about placing many trades per day. Scalpers focus on making modest profits on each of the tiny orders that they place, so that their modest profits accumulate to a more significant total. A lot more Forex trading experience is needed. If you want to scalp the Forex market, you should wait until you have gained some valuable experience, as well as a lot of knowledge of the market.
There are of course other factors, but when choosing a Forex trading strategy, you need to consider yourself as an individual trader. Think about what kind of time you have on your hands, how much experience you have (if any), what kind of currency pairs you will be looking to trade most, etc. As already implied, if you have little experience you should focus on more long-term strategies that allow you to minimize risk and make more modest (but more certain) profits. These long-term strategies will mean that you won't have to spend a lot of time in front of your Forex trading platform, which will allow you to study more and gain the currency trading knowledge that you need.
In conclusion, there is no best Forex trading strategy. When choosing a strategy to use, it's all about discovering which strategy will suit you and your own individual Forex trading career the best.
How To Develop Your Own Support and Resistance Forex Trading System
Recently, I have received a lot of questions from people who want to learn how they can trade the Forex markets profitably using the best Support and Resistance trading strategies.
Today you are lucky because in this article, I am about to discuss all the pros and cons of developing your own Support and Resistance Forex trading system.
One thing that every new Forex trader should understand is that:
It does not matter whether or not you are trading the Forex markets using Fibonacci Forex trading systems or Support and Resistance trading strategies.
The most important thing that differentiates 1% of the successful traders from 99% of the unsuccessful ones is the thing called Forex trading psychology.
This include all the things every successful Forex trader need to do before, during and after he pull a trigger to open a trade.
Here are some of the questions he or she needs to answer to ensure that he is mentally ready to develop his own support and resistance Forex trading system:
Is he discipline enough to follow his or her trading plan, without been easily swayed by big name Forex Gurus out there?
Is he always trading with a trading stop-loss and follow his strict money management plan?
Does he knows in advance how much he is prepared to lose, if the trade goes against him.
Is he discipline enough to stop trading after he or she managed to reach his daily, weekly or monthly target?
Does his trading plan, also clearly define, what to do if the market goes against you and how much money you are prepared to lose?
Now let me explain what is Support and Resistance trading Levels?
At Support level, assuming that the market is trading up for example, there are more buyers than sellers whereas at resistance level there are more sellers than Buyers.
Every time when the price comes closer to these levels, it will try to break them. If it succeeds to break the resistance level for example, next time when it comes back to it to test that broken resistance it will act as a new support level.
The opposite is also true when it comes to a broken Support level as now it will become a new resistance. In order to be profitable Forex trader all that is required from you is to be discipline enough by trading your favorite systems following some strict money management plan.
It is now time for you to go and create your own profitable Forex trading system that will be mainly based on Support and resistance levels using the information you learn about in this article.
Today you are lucky because in this article, I am about to discuss all the pros and cons of developing your own Support and Resistance Forex trading system.
One thing that every new Forex trader should understand is that:
It does not matter whether or not you are trading the Forex markets using Fibonacci Forex trading systems or Support and Resistance trading strategies.
The most important thing that differentiates 1% of the successful traders from 99% of the unsuccessful ones is the thing called Forex trading psychology.
This include all the things every successful Forex trader need to do before, during and after he pull a trigger to open a trade.
Here are some of the questions he or she needs to answer to ensure that he is mentally ready to develop his own support and resistance Forex trading system:
Is he discipline enough to follow his or her trading plan, without been easily swayed by big name Forex Gurus out there?
Is he always trading with a trading stop-loss and follow his strict money management plan?
Does he knows in advance how much he is prepared to lose, if the trade goes against him.
Is he discipline enough to stop trading after he or she managed to reach his daily, weekly or monthly target?
Does his trading plan, also clearly define, what to do if the market goes against you and how much money you are prepared to lose?
Now let me explain what is Support and Resistance trading Levels?
At Support level, assuming that the market is trading up for example, there are more buyers than sellers whereas at resistance level there are more sellers than Buyers.
Every time when the price comes closer to these levels, it will try to break them. If it succeeds to break the resistance level for example, next time when it comes back to it to test that broken resistance it will act as a new support level.
The opposite is also true when it comes to a broken Support level as now it will become a new resistance. In order to be profitable Forex trader all that is required from you is to be discipline enough by trading your favorite systems following some strict money management plan.
It is now time for you to go and create your own profitable Forex trading system that will be mainly based on Support and resistance levels using the information you learn about in this article.
What Are The Best Forex Currency Trading Strategies?
There are many different types of Forex trading strategies as you probably know by now. However, many traders have trouble deciding which Forex trading strategy is best for them to use. So, here is an overview of some of the more popular strategies that you can use to trade the Forex market with, as well as some of their advantages and disadvantages.
Traditional Forex Trading Strategies
Traditional Forex trading strategies include all strategies or systems that involve taking either a straight buy or sell position in the market. If you don't fully understand the Forex market yet, you should first make sure you can answer the question "what is forex trading?" before you move on to actually learning how to trade. Many traders make this mistake of not learning the basics first, and it's a very costly mistake to make. There are basically three major classifications of traditional Forex trading strategies that traders can use to trade the Forex markets with:
• Software trading systems - Often referred to as "robot" trading systems, these computer software trading systems are usually 100% mechanical in nature and leave little to no room for human discretion. Good in theory, but in reality the markets are too dynamic and diverse to be mechanized effectively over the long-run.
• Indicator trading systems - Indicators are simply derivates of the raw price action of a market that show the price movement in a different format. Some indicators like moving averages and a couple others are useful, but in and of themselves, most indicators are simply more confusing than anything else.
• Classic technical analysis trading strategies - Classical technical chart-reading involves making use of the price bars and the levels they create on a chart. Nothing fancy; just simple price patters and support and resistance trading. This approach is the most logical and typically the most effective when used with a developed discretionary trading sense.
If you are totally new to trading Forex and want to get a thorough explanation of all the basics of Forex and Forex trading strategies, check out this free beginners forex course.
Forex Binary Option Trading
Many traders become intrigued with the possibilities of trading Forex with binary options strategies, and rightly so, binary options are a relatively new and very exciting way to trade the Forex market. Whereas with traditional Forex trading strategies the trader must manage the position and decide when to close the trade out, when you employ forex binary options you only need to be right about the direction of the market when the option expires. If you pick the direction correctly when your binary option expires, you make money, if you are wrong you lose only the money you paid to buy the option. There are call binary options and put binary options. If you think the market will be higher than the current prices at the expiration of the binary options, then you buy a binary call, if you think it will be lower at expiration then you buy a binary put option.
Traditional Forex Trading Strategies
Traditional Forex trading strategies include all strategies or systems that involve taking either a straight buy or sell position in the market. If you don't fully understand the Forex market yet, you should first make sure you can answer the question "what is forex trading?" before you move on to actually learning how to trade. Many traders make this mistake of not learning the basics first, and it's a very costly mistake to make. There are basically three major classifications of traditional Forex trading strategies that traders can use to trade the Forex markets with:
• Software trading systems - Often referred to as "robot" trading systems, these computer software trading systems are usually 100% mechanical in nature and leave little to no room for human discretion. Good in theory, but in reality the markets are too dynamic and diverse to be mechanized effectively over the long-run.
• Indicator trading systems - Indicators are simply derivates of the raw price action of a market that show the price movement in a different format. Some indicators like moving averages and a couple others are useful, but in and of themselves, most indicators are simply more confusing than anything else.
• Classic technical analysis trading strategies - Classical technical chart-reading involves making use of the price bars and the levels they create on a chart. Nothing fancy; just simple price patters and support and resistance trading. This approach is the most logical and typically the most effective when used with a developed discretionary trading sense.
If you are totally new to trading Forex and want to get a thorough explanation of all the basics of Forex and Forex trading strategies, check out this free beginners forex course.
Forex Binary Option Trading
Many traders become intrigued with the possibilities of trading Forex with binary options strategies, and rightly so, binary options are a relatively new and very exciting way to trade the Forex market. Whereas with traditional Forex trading strategies the trader must manage the position and decide when to close the trade out, when you employ forex binary options you only need to be right about the direction of the market when the option expires. If you pick the direction correctly when your binary option expires, you make money, if you are wrong you lose only the money you paid to buy the option. There are call binary options and put binary options. If you think the market will be higher than the current prices at the expiration of the binary options, then you buy a binary call, if you think it will be lower at expiration then you buy a binary put option.
Simple Forex Trading Strategy - This One Is Easy to Understand and Makes Huge FX Profits!
In this article, we will look at a simple Forex trading strategy which is simple to understand, easy to apply and makes huge gains. This strategy will always work and if you learn it correctly, you will soon be making big trading profits - let's take a look at it in more detail.
The simple Forex trading strategy we are going to use is based on swing trading, so let's look at the logic its based on.
Traders always push prices to far to the upside, when greed is present and to far to the downside, when fear is present. You will see short sharp price spikes on any chart which reflect these emotions. These price spikes never last long and prices soon come back to more realistic levels.
The aim of the swing trader therefore is - to sell into greed and buy into fear and make profits. Now let's look at some simple steps you can follow to do this. We will look at how to do this, by selling into greed but the same principles apply in an oversold market.
1. Look for a short sharp price move to the upside and then check how overbought the market is
To check how overbought a market is look at some momentum oscillators and they will show you how overbought the market is in historical terms. Good indicators to use are - the stochastic, the MACD and the RSI. There all easy to learn so look them up.
2. If the market is overbought, look for a level of resistance above the price you expect to hold and then wait. Wait for the momentum indicators you are following to turn down, while the price continues to rise. This is called divergence and warns of a break back down so, execute your trading signal and go short, with a stop above nearby resistance.
3. Set a target and wait for it to be hit and take profit.
The simple Forex strategy above, will always work because humans will always push prices to far to the upside or downside and these price spikes never last long and therefore, offer the swing trader huge profit opportunities.
You can learn to swing trade quickly and each currency will give you a few good opportunities each month, if you only trade market extremes, you will have the odds on your side and make triple digit profits in around 30 minutes a day. Learn this simple Forex trading strategy and you can enjoy long term currency trading success.
The simple Forex trading strategy we are going to use is based on swing trading, so let's look at the logic its based on.
Traders always push prices to far to the upside, when greed is present and to far to the downside, when fear is present. You will see short sharp price spikes on any chart which reflect these emotions. These price spikes never last long and prices soon come back to more realistic levels.
The aim of the swing trader therefore is - to sell into greed and buy into fear and make profits. Now let's look at some simple steps you can follow to do this. We will look at how to do this, by selling into greed but the same principles apply in an oversold market.
1. Look for a short sharp price move to the upside and then check how overbought the market is
To check how overbought a market is look at some momentum oscillators and they will show you how overbought the market is in historical terms. Good indicators to use are - the stochastic, the MACD and the RSI. There all easy to learn so look them up.
2. If the market is overbought, look for a level of resistance above the price you expect to hold and then wait. Wait for the momentum indicators you are following to turn down, while the price continues to rise. This is called divergence and warns of a break back down so, execute your trading signal and go short, with a stop above nearby resistance.
3. Set a target and wait for it to be hit and take profit.
The simple Forex strategy above, will always work because humans will always push prices to far to the upside or downside and these price spikes never last long and therefore, offer the swing trader huge profit opportunities.
You can learn to swing trade quickly and each currency will give you a few good opportunities each month, if you only trade market extremes, you will have the odds on your side and make triple digit profits in around 30 minutes a day. Learn this simple Forex trading strategy and you can enjoy long term currency trading success.
Apply an Appropriate Forex Strategy While Trading in the Forex Market
Forex strategy helps in optimizing the foreign exchange trading methods. There are numerous methods which deal with the strategies while trading at the forex trading system. The classification is based on various approaches that are followed day to day. The various methods include analysis based on the trends, simple method of calculating averages, candle stick pattern etc.
The method based on the analysis of trends involves the collection of the information about the changes in the value of the stock as an individual or the market as a whole. The trends vary with time; at times they show a sharp increase which produces a pleasing effect on the users. A share with a constant rate of increase in trends is preferred so as to reap huge profits. The changes in the transfer of the stocks and market transactions affect the trends to a large extent. The method based on the averages deals with the categorization of the values based on limiting intervals in time. The interval may be determined based on the user requirements. This method enables in projecting the value of average for fixed time periods. If there is a sudden increase or decrease in the value, then it is depicted in the form of a deviation in the graph.
Additional features of the system:
Care is taken to manage the values not letting them drop below the limiting value. The candle stick pattern helps in projecting the sharp changes in an efficient manner, and allows the user to adjust accordingly. Thus the forex strategy boosts up the performance of the user in stock market. The charges for the system vary from hundreds to few thousands of dollars. These charges are for the courses that are made available as well as on mentor who works on these systems to provide the users with appropriate knowledge. The system may be designed with efficient methods in such manner that it reaches the users easily and is more appealing and attracting for them. By adding necessary videos along with necessary details this feel can be achieved more effectively.
The trading systems also provide live webinar facilities which enable the users in interacting in a better and comfortable way. Practical applications of the trade are also made available to the users which help in gaining live experience of the various factors which influence the market. Several tools such as the indicators of the market value are also used to denote the exact value of the market shares.
It gets feedback from the users after every session so as to enhance it further. Thus the forex trading system enables the users to gain complete knowledge of the forex market. This system plays a vital role in managing the efficient management of the stocks in the share market. They are also user friendly so that it makes learning much easier and more practical.
The method based on the analysis of trends involves the collection of the information about the changes in the value of the stock as an individual or the market as a whole. The trends vary with time; at times they show a sharp increase which produces a pleasing effect on the users. A share with a constant rate of increase in trends is preferred so as to reap huge profits. The changes in the transfer of the stocks and market transactions affect the trends to a large extent. The method based on the averages deals with the categorization of the values based on limiting intervals in time. The interval may be determined based on the user requirements. This method enables in projecting the value of average for fixed time periods. If there is a sudden increase or decrease in the value, then it is depicted in the form of a deviation in the graph.
Additional features of the system:
Care is taken to manage the values not letting them drop below the limiting value. The candle stick pattern helps in projecting the sharp changes in an efficient manner, and allows the user to adjust accordingly. Thus the forex strategy boosts up the performance of the user in stock market. The charges for the system vary from hundreds to few thousands of dollars. These charges are for the courses that are made available as well as on mentor who works on these systems to provide the users with appropriate knowledge. The system may be designed with efficient methods in such manner that it reaches the users easily and is more appealing and attracting for them. By adding necessary videos along with necessary details this feel can be achieved more effectively.
The trading systems also provide live webinar facilities which enable the users in interacting in a better and comfortable way. Practical applications of the trade are also made available to the users which help in gaining live experience of the various factors which influence the market. Several tools such as the indicators of the market value are also used to denote the exact value of the market shares.
It gets feedback from the users after every session so as to enhance it further. Thus the forex trading system enables the users to gain complete knowledge of the forex market. This system plays a vital role in managing the efficient management of the stocks in the share market. They are also user friendly so that it makes learning much easier and more practical.
Aggressive Forex Trading Strategies for Long-Term Profits
The lure of quick money brings many people to the online currency trading scene and most of the people get tied up, trying to make daily profits investing in short time frames, where prices are very volatile.
However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?
Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.
Consider the effect of having a $5000 dollar account and what a 1000 pip successful trade would mean to you. If trading mini-lots you would have a gain of 20% for the year on a single trade. In this economic time when banks are offering 2% interest or less, a return of 20% is fantastic. This trade taken at the right time could have provided nearly 1800 pips.
The Forex market is volatile and you must be prepared for this volatility when attempting this type of trade. Based on a chart describing the above trade the proper point to sell would have been between $1.4000 and $1.3900. Had you taken this trade, you would have had to agonize through nearly two weeks with a 100 pip or greater loss in your account before the market continued in the down trend. However, once through that point the money was there for the taking. Big trades require the guts to have staying power.
Another key to this type trade is to not try and predict the trend, let it develop and then ride the wave. Wait for the breakout, execute your trade and trust in the trend. Remember you are trading for the long-term and that could mean a few months not days. You are searching for big profits. The market is going to correct itself as the trend continues and you must weather these pullbacks with calm. Be careful of trailing stops to close as you will be stopped out on a correction and may have to wait for months in order to find another trade.
In conclusion, you will find that trading these long-term trends will find big profits but the rules of money management go out the window when you have a small account. You may find yourself with more than 30% of your account on the line but you should find that the profits on these trades more than make up for it.
However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?
Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.
Consider the effect of having a $5000 dollar account and what a 1000 pip successful trade would mean to you. If trading mini-lots you would have a gain of 20% for the year on a single trade. In this economic time when banks are offering 2% interest or less, a return of 20% is fantastic. This trade taken at the right time could have provided nearly 1800 pips.
The Forex market is volatile and you must be prepared for this volatility when attempting this type of trade. Based on a chart describing the above trade the proper point to sell would have been between $1.4000 and $1.3900. Had you taken this trade, you would have had to agonize through nearly two weeks with a 100 pip or greater loss in your account before the market continued in the down trend. However, once through that point the money was there for the taking. Big trades require the guts to have staying power.
Another key to this type trade is to not try and predict the trend, let it develop and then ride the wave. Wait for the breakout, execute your trade and trust in the trend. Remember you are trading for the long-term and that could mean a few months not days. You are searching for big profits. The market is going to correct itself as the trend continues and you must weather these pullbacks with calm. Be careful of trailing stops to close as you will be stopped out on a correction and may have to wait for months in order to find another trade.
In conclusion, you will find that trading these long-term trends will find big profits but the rules of money management go out the window when you have a small account. You may find yourself with more than 30% of your account on the line but you should find that the profits on these trades more than make up for it.
Forex Strategy - How The MACD Indicator Can Save You Anxiety
Regardless of your Forex strategy, have you ever entered trades and shortly afterwards wished you hadn't? The information that follows will hopefully cut down greatly on the number of trades that cause you anxiety!
The MACD (Moving Average Convergence Divergence) indicator can add a degree of certainty to your Forex strategy.
As with any indicator, it is too risky to enter trades on this signal alone. However, as we will see, used with caution on higher time frames, it can help confirm you are going in the right direction and that your trade is higher probability.
Taking MACD Apart
Let's take MACD apart and describe it's component parts.
The default MACD on most charting packages sets 2 EMA's (Exponential Moving Averages) at 26 and 12 days.
This is represented by a colored line (color varies according to charting package) which crosses a different colored 9 EMA often termed the trigger line.
When MACD (the 12/26 EMA) crosses above the trigger line (9 EMA) upward momentum is indicated and vice versa.
A center line, or zero line, often called the water line is also shown in the MACD indicator. When MACD is above the water line an upward trend is indicated, when it is below the water line, a downward trend is indicated.
MACD also includes a histogram, small vertical lines that appear above or below the zero line, not unlike mountains and valleys in appearance.
MACD is a lagging indicator which follows price action.
The histogram is an indicator of MACD. So watching the histogram can give you an early indication of where MACD is going. The height of the histogram can be a good momentum indicator.
Using MACD As A Safety Indicator
How can you use MACD to your advantage?
If you want to be very cautious in your Forex strategy, going only for high probability trades, then pay attention to MACD on the 4 hour and 1 hour charts.
Some traders will only enter a trade when the 4 hour and 1 hour MACD's are going in the same direction. This will mean a lot less trades but the ones you do take are likely to be profitable. (Agreement of the two MACD's is used in conjunction with other indicators, not by itself.)
MACD on the 1 hour chart is particularly powerful. If you want to stay out of trouble and avoid trades you might later regret, NEVER trade against the direction of the 1 hour MACD. To do otherwise is not necessarily foolhardy if you know what you are doing.
But for the newer, less experienced trader, only trading long when MACD has crossed up, or short when MACD has crossed down on the hourly chart when your other favorite indicators line up, will make for a higher success rate with your Forex strategy. It will also save you much anxiety and heartache!
The MACD (Moving Average Convergence Divergence) indicator can add a degree of certainty to your Forex strategy.
As with any indicator, it is too risky to enter trades on this signal alone. However, as we will see, used with caution on higher time frames, it can help confirm you are going in the right direction and that your trade is higher probability.
Taking MACD Apart
Let's take MACD apart and describe it's component parts.
The default MACD on most charting packages sets 2 EMA's (Exponential Moving Averages) at 26 and 12 days.
This is represented by a colored line (color varies according to charting package) which crosses a different colored 9 EMA often termed the trigger line.
When MACD (the 12/26 EMA) crosses above the trigger line (9 EMA) upward momentum is indicated and vice versa.
A center line, or zero line, often called the water line is also shown in the MACD indicator. When MACD is above the water line an upward trend is indicated, when it is below the water line, a downward trend is indicated.
MACD also includes a histogram, small vertical lines that appear above or below the zero line, not unlike mountains and valleys in appearance.
MACD is a lagging indicator which follows price action.
The histogram is an indicator of MACD. So watching the histogram can give you an early indication of where MACD is going. The height of the histogram can be a good momentum indicator.
Using MACD As A Safety Indicator
How can you use MACD to your advantage?
If you want to be very cautious in your Forex strategy, going only for high probability trades, then pay attention to MACD on the 4 hour and 1 hour charts.
Some traders will only enter a trade when the 4 hour and 1 hour MACD's are going in the same direction. This will mean a lot less trades but the ones you do take are likely to be profitable. (Agreement of the two MACD's is used in conjunction with other indicators, not by itself.)
MACD on the 1 hour chart is particularly powerful. If you want to stay out of trouble and avoid trades you might later regret, NEVER trade against the direction of the 1 hour MACD. To do otherwise is not necessarily foolhardy if you know what you are doing.
But for the newer, less experienced trader, only trading long when MACD has crossed up, or short when MACD has crossed down on the hourly chart when your other favorite indicators line up, will make for a higher success rate with your Forex strategy. It will also save you much anxiety and heartache!
Advantages of Forex Mirror Platform
Forex mirror trading is a platform used by traders in the Forex market. In this platform, the trader is given the chance to choose the right strategies to cater their personal needs and achieve their goals. In automated trading, the deal is done automatically without you knowing the methods and strategies used to determine if it is the right time to buy or to sell. However, in the mirror platform, you are more knowledgeable on the process itself. In fact, it is you who have the control to use a certain strategy. There are different methods and strategies available in this kind of platform. This platform has been considered as one of the best Forex strategies used by traders in the market since it gives freedom to the investors.
Aside from the main reason that traders can choose what strategy to use, there are more advantages by using the platform. Just like any other platform, it allows investors to have live results and real time performance reports. With this, traders can see the actual performance of the strategy and see how effective the strategy is. In addition, you can set additional criteria in the method such as the currency pairs to be traded. Another very important advantage of using the platform is it eliminates the emotional factors. Emotion is very crucial when it is use during the course of dealing in the market. Lastly, the traders are allowed to use another manual strategy in addition to the automatic system.
In using the platform, extreme experience is not really necessary. However, you have to make some research about the effective mirror strategies and have basic knowledge on how the system works. First, you must consider your goals and the money you wish to invest in the market. After gaining the necessary knowledge, you can try using the strategy. Select the right strategies to accomplish your goals and the mirror process trading begins.
Deciding on what trading platform to use is not easy. You need to study it hard before making a decision. Make sure that your investment will never be wasted. In addition, you need to consider the changes in the market and the various performance of certain strategy. One strategy might not good when shifts happen in the market. Thus, you should also identify the different effects of market change to the method used. For the mirror platform, a certain strategy will stop as soon as you end it.
Aside from the main reason that traders can choose what strategy to use, there are more advantages by using the platform. Just like any other platform, it allows investors to have live results and real time performance reports. With this, traders can see the actual performance of the strategy and see how effective the strategy is. In addition, you can set additional criteria in the method such as the currency pairs to be traded. Another very important advantage of using the platform is it eliminates the emotional factors. Emotion is very crucial when it is use during the course of dealing in the market. Lastly, the traders are allowed to use another manual strategy in addition to the automatic system.
In using the platform, extreme experience is not really necessary. However, you have to make some research about the effective mirror strategies and have basic knowledge on how the system works. First, you must consider your goals and the money you wish to invest in the market. After gaining the necessary knowledge, you can try using the strategy. Select the right strategies to accomplish your goals and the mirror process trading begins.
Deciding on what trading platform to use is not easy. You need to study it hard before making a decision. Make sure that your investment will never be wasted. In addition, you need to consider the changes in the market and the various performance of certain strategy. One strategy might not good when shifts happen in the market. Thus, you should also identify the different effects of market change to the method used. For the mirror platform, a certain strategy will stop as soon as you end it.
Forex Supersonic Manual FREE Strategy That Makes $36,063 Per Month On Average!
If you are a new forex trader than you must be hopping from one trading system to another looking for something that can work for you. Trying one forex robot after another won't make you a forex trader. What you need to do is to learn the basics of forex trading.
Many successful forex traders still trade with their manual trading systems. Most of them still use manual forex trading strategies. However, once the forex strategy is proven and tested under different market conditions and gives very good results, you can convert that forex stratey or what you call a system into a EA or an Exert Advisor.
But straight away, you cannot develop or program a forex strategy into a robot or an EA. As a forex trader what you need is a forex strategy that makes money for you in as little time as possible. Sitting in front of your computer screen won't make you into winning forex trader.
Staring at the computer screen for hours can be dangerous for your physcial health. What you need is a forex strategy that does not take more than 15-30 minute to makes many pips for you. How about making at least a 100 pips daily.
Meet John Wilson, a professional forex trader. He developed a forex strategy based on trading the breakouts in the forex market. In the forex market breakouts usually happen when economic reports like the NFP Report or the FOMC Report is released. NFP Report has become very important over the years. As the economy went into recession, unemployment data has become very important for the markets.
Almost all the markets that includes stocks, forex, futures and others. Now, when the breakout takes place in the market and if you are on the right side of the market, you can make hundreds of easy pips in just a matter of few moments. This is exactly what John Wilson Forex Breakout Trading Strategy is based on.
In the video he shows how made $7,662.00 in just a few moments when he entered a short trade and the market went down with a big bang. Similalry in the same video, John shows how he made a nice $1,611.00 profit in just a matter of few minutes trading a similar breakout in the Asian Session of the market. John calls his FREE Forex Strategy as Forex Supersonic Strategy.
Now, John is giving away his manual forex breakout trading strategy FREE. You can simply download it as a complimentary gift from John. But when John gave away his forex breakout trading strategy FREE, he kept on getting emails from alot of traders who were happy with his FREE forex strategy but wanted him to convert it into an EA.
Traders wanted an EA that could automatically implement that forex breakout trading strategy without their sitting in front of their computer screens. So, John has now developed an EA also that he calls the Forex Supersonic Robot EA.
Now, John is willing to even give you his Forex Supersonic Robot EA that makes for him on average $36,063 every month at a small price of not more than $100. What you need to do it is to take a look at the manual forex supersonic strategy and if you want to try the Forex Supersonic Robot EA do that too RISK FREE for 60 days.
The best way to test the manual as well as the automated version of the Forex Supersonic Strategy is on your demo account. If you find it as profitable as it is for John, keep it to make $36,063 per month or simply for for a refund. Good Luck!
Many successful forex traders still trade with their manual trading systems. Most of them still use manual forex trading strategies. However, once the forex strategy is proven and tested under different market conditions and gives very good results, you can convert that forex stratey or what you call a system into a EA or an Exert Advisor.
But straight away, you cannot develop or program a forex strategy into a robot or an EA. As a forex trader what you need is a forex strategy that makes money for you in as little time as possible. Sitting in front of your computer screen won't make you into winning forex trader.
Staring at the computer screen for hours can be dangerous for your physcial health. What you need is a forex strategy that does not take more than 15-30 minute to makes many pips for you. How about making at least a 100 pips daily.
Meet John Wilson, a professional forex trader. He developed a forex strategy based on trading the breakouts in the forex market. In the forex market breakouts usually happen when economic reports like the NFP Report or the FOMC Report is released. NFP Report has become very important over the years. As the economy went into recession, unemployment data has become very important for the markets.
Almost all the markets that includes stocks, forex, futures and others. Now, when the breakout takes place in the market and if you are on the right side of the market, you can make hundreds of easy pips in just a matter of few moments. This is exactly what John Wilson Forex Breakout Trading Strategy is based on.
In the video he shows how made $7,662.00 in just a few moments when he entered a short trade and the market went down with a big bang. Similalry in the same video, John shows how he made a nice $1,611.00 profit in just a matter of few minutes trading a similar breakout in the Asian Session of the market. John calls his FREE Forex Strategy as Forex Supersonic Strategy.
Now, John is giving away his manual forex breakout trading strategy FREE. You can simply download it as a complimentary gift from John. But when John gave away his forex breakout trading strategy FREE, he kept on getting emails from alot of traders who were happy with his FREE forex strategy but wanted him to convert it into an EA.
Traders wanted an EA that could automatically implement that forex breakout trading strategy without their sitting in front of their computer screens. So, John has now developed an EA also that he calls the Forex Supersonic Robot EA.
Now, John is willing to even give you his Forex Supersonic Robot EA that makes for him on average $36,063 every month at a small price of not more than $100. What you need to do it is to take a look at the manual forex supersonic strategy and if you want to try the Forex Supersonic Robot EA do that too RISK FREE for 60 days.
The best way to test the manual as well as the automated version of the Forex Supersonic Strategy is on your demo account. If you find it as profitable as it is for John, keep it to make $36,063 per month or simply for for a refund. Good Luck!
Why You Should Not Use Buy-and-Hold Strategies in Forex Trading
Some Forex traders, particularly those who are just starting out and don't want to close their trades, use buy-and-hold strategies. However, although these types of strategies can work outside the Forex market, they don't really work inside it.
A buy-and-hold strategy is used to hold onto losing trades, in the hope of them coming up in value eventually in the long run. This is logical; if a trade is losing, you hold onto it until it becomes profitable. However, if the currency market really worked like this, everyone would be rich because no one would ever lose.
Buy-and-hold strategies are used a lot in real estate. The economies of developed countries usually go through boom-and-bust cycles, where the prices of assets can rise and fall cyclically. Those who invest in real estate usually see through bad economic times and wait them out until the economy resumes to normal, where they can then sell the assets or at least just feel happier about them, knowing that they are once again worth something significant - but currencies don't work like this.
The prices of currencies tend to trend strongly in particular directions; their values typically trend in one direction in the long run. This is exactly why buy-and-hold strategies don't work particularly well in the market for currencies. By holding onto a losing trade, your losses will simply build up and up. If you'd applied leverage to a losing trade, you would eventually meet your Forex broker's maintenance margin and end up having to cut your losses the hard way. This can lead Forex traders to go completely out of business.
In the FX market, it's best to cut your losses when you can and not let them run; let your profits run but not your losses. Good money management and implementation of good money management techniques can help to avoid your losses from running. You should have a good Forex trading plan and you should follow it, if you want to avoid your losses from building up and up.
It's best to use a proper Forex trading strategy in conjunction with good trading tactics; this way you stand a much greater chance of profiting in the Forex market. Beginners especially need to understand that currency trading is not about winning with every single trade and that losses are inevitable. You just need to focus on maximizing the amount of profitable trades you get and minimizing the amount of losing trades you get. Never hold onto losing trades as they will most likely bring you huge losses in the future which will be difficult for you to afford, especially if you traded on margin.
In conclusion, buy-and-hold strategies do not generally work in the market for currencies. Whilst they might work outside of the Forex market, they don't really work inside it. It would be a far better idea to manage your money properly and cut your losses by placing stop-loss orders and by using other important money management techniques. You should devise a Forex trading plan and follow it; this way you will be able to stay disciplined with your trading and consistent, helping you to take more profits. A losing trade is losing, so you should get rid of it and move on; look for more potentially profitable opportunities in the markets - there are many.
A buy-and-hold strategy is used to hold onto losing trades, in the hope of them coming up in value eventually in the long run. This is logical; if a trade is losing, you hold onto it until it becomes profitable. However, if the currency market really worked like this, everyone would be rich because no one would ever lose.
Buy-and-hold strategies are used a lot in real estate. The economies of developed countries usually go through boom-and-bust cycles, where the prices of assets can rise and fall cyclically. Those who invest in real estate usually see through bad economic times and wait them out until the economy resumes to normal, where they can then sell the assets or at least just feel happier about them, knowing that they are once again worth something significant - but currencies don't work like this.
The prices of currencies tend to trend strongly in particular directions; their values typically trend in one direction in the long run. This is exactly why buy-and-hold strategies don't work particularly well in the market for currencies. By holding onto a losing trade, your losses will simply build up and up. If you'd applied leverage to a losing trade, you would eventually meet your Forex broker's maintenance margin and end up having to cut your losses the hard way. This can lead Forex traders to go completely out of business.
In the FX market, it's best to cut your losses when you can and not let them run; let your profits run but not your losses. Good money management and implementation of good money management techniques can help to avoid your losses from running. You should have a good Forex trading plan and you should follow it, if you want to avoid your losses from building up and up.
It's best to use a proper Forex trading strategy in conjunction with good trading tactics; this way you stand a much greater chance of profiting in the Forex market. Beginners especially need to understand that currency trading is not about winning with every single trade and that losses are inevitable. You just need to focus on maximizing the amount of profitable trades you get and minimizing the amount of losing trades you get. Never hold onto losing trades as they will most likely bring you huge losses in the future which will be difficult for you to afford, especially if you traded on margin.
In conclusion, buy-and-hold strategies do not generally work in the market for currencies. Whilst they might work outside of the Forex market, they don't really work inside it. It would be a far better idea to manage your money properly and cut your losses by placing stop-loss orders and by using other important money management techniques. You should devise a Forex trading plan and follow it; this way you will be able to stay disciplined with your trading and consistent, helping you to take more profits. A losing trade is losing, so you should get rid of it and move on; look for more potentially profitable opportunities in the markets - there are many.
Forex Trading System - A Simple & Effective Forex Strategy Anyone Can Use
One of the most frequently asked questions I get from new students at FX University is "Do you have a forex trading system that I can use that doesn't require I spend much time in front of my computer?"
Now, generally as soon as I receive this question I immediately question the motive of the individual. I mean let's face it, most people want something without having to work for it and trading the Forex market is certainly no place for someone that isn't willing to roll-up their sleeves and get dirty. On the other hand, the reality is that most Forex Traders have full-time jobs, families and a host of other responsibilities so becoming a professional Forex trader is simply not an option.
Given the demand, I spent some time digging through my preverbal toolbox and came up with a simple and effective Forex trading strategy that ANYONE can use. The strategy is called "The Weekend Warrior".
Now before we get to the strategy I'd like to first take a minute and explain a Moving Average as it is the basis for the strategy. If you're already familiar with a Moving Average please feel free to skip down to "Here's How The Weekend Warrior works:"
One of the most widely used technical indicators of Forex Traders is the Moving Average. The Moving Average is an indicator which shows the average value of a security being analyzed over a determined period of time.
There are many mathematical variations of the MA applied specifically to Forex trading; however, they all are attempting to accomplish virtually the same purpose: to predict patterns in currency movements that will allow Forex traders to enter and exit a position at the most profitable time of a trend shift.
Traditionally, a shorter (faster) MA is plotted on a chart along with a longer (slower) MA. The cross of the faster MA into the slower MA from above would be considered a bearish move or possible downward trend. Inversely, the cross of the slower MA from below back above a slower MA would be a signal of a bullish move or possible upward trend.
Here's How the "The Weekend Warrior" works:
On a daily chart insert a Moving Average (MA) 10 and a Moving Average (MA) 40.
Long Position: Each Friday before the close, buy any currency on a 9-day break-out, if the MA10 is above the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Short Position: Each Friday before the close, sell short any currency on a ten day break-out, if the MA10 is below the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Leverage: Use your existing money management strategy or we recommend less than 1% equity.
Why does it work? For one, because other people aren't doing it. And two, you're capitalizing on a pre-defined gap that occurs between the close and open of the currency market.
Now go mark your calendar for next Friday and give it a try. The results will speak for themselves and who knows TGIF could have a whole new meaning for you.
Dr. Elena Peters is the founder & CEO of FX University a premier Forex Education company that provides investors with precise, replicable and profitable trading systems that ANYONE Can Use!
Dr. Peters is also a Sr. Currency Trader with TradeBridge FX; a CFTC/NFA registered alternative investment firm that offers independently managed accounts to high net-worth individuals and institutional investors.
Now, generally as soon as I receive this question I immediately question the motive of the individual. I mean let's face it, most people want something without having to work for it and trading the Forex market is certainly no place for someone that isn't willing to roll-up their sleeves and get dirty. On the other hand, the reality is that most Forex Traders have full-time jobs, families and a host of other responsibilities so becoming a professional Forex trader is simply not an option.
Given the demand, I spent some time digging through my preverbal toolbox and came up with a simple and effective Forex trading strategy that ANYONE can use. The strategy is called "The Weekend Warrior".
Now before we get to the strategy I'd like to first take a minute and explain a Moving Average as it is the basis for the strategy. If you're already familiar with a Moving Average please feel free to skip down to "Here's How The Weekend Warrior works:"
One of the most widely used technical indicators of Forex Traders is the Moving Average. The Moving Average is an indicator which shows the average value of a security being analyzed over a determined period of time.
There are many mathematical variations of the MA applied specifically to Forex trading; however, they all are attempting to accomplish virtually the same purpose: to predict patterns in currency movements that will allow Forex traders to enter and exit a position at the most profitable time of a trend shift.
Traditionally, a shorter (faster) MA is plotted on a chart along with a longer (slower) MA. The cross of the faster MA into the slower MA from above would be considered a bearish move or possible downward trend. Inversely, the cross of the slower MA from below back above a slower MA would be a signal of a bullish move or possible upward trend.
Here's How the "The Weekend Warrior" works:
On a daily chart insert a Moving Average (MA) 10 and a Moving Average (MA) 40.
Long Position: Each Friday before the close, buy any currency on a 9-day break-out, if the MA10 is above the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Short Position: Each Friday before the close, sell short any currency on a ten day break-out, if the MA10 is below the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Leverage: Use your existing money management strategy or we recommend less than 1% equity.
Why does it work? For one, because other people aren't doing it. And two, you're capitalizing on a pre-defined gap that occurs between the close and open of the currency market.
Now go mark your calendar for next Friday and give it a try. The results will speak for themselves and who knows TGIF could have a whole new meaning for you.
Dr. Elena Peters is the founder & CEO of FX University a premier Forex Education company that provides investors with precise, replicable and profitable trading systems that ANYONE Can Use!
Dr. Peters is also a Sr. Currency Trader with TradeBridge FX; a CFTC/NFA registered alternative investment firm that offers independently managed accounts to high net-worth individuals and institutional investors.
Why Your Forex Trading Strategy Should Be Simple and Not Complex
Many traders and investors in the market for currencies, especially beginning ones, assume that simple Forex trading strategies are not plausible. However, the simpler ones can actually prove to be the more profitable and ideal ones too.
The problem is, we generally tend to be more impressed by complexity rather than simplicity. If a beginner reads up on a complicated trading strategy that they can hardly begin to understand, they immediately presume that the strategy in question will allow them to deduce significant profits, or at least more profits than other strategies that are less complicated. In reality, it doesn't matter how complex or sophisticated a particular strategy is or sounds; as long as you understand your trading strategy and it actually does work when you put it to use, then you should continue to use it no matter what. If your currency trading strategy doesn't work, then change parts of it and adapt it. Forex trading is ultimately all about trial-and-error learning, so don't lose your confidence if you make a bad start; you should just persevere until you actually find a strategy that does work. Unfortunately many beginners don't persevere and this is one of the main reasons why Forex traders fail.
Really, it's pointless using a strategy that you don't even understand, in the Forex market. In fact Forex traders, especially beginning ones, tend to fail when using more complex trading strategies. This is because not only do they struggle to understand them and get confused, but the more complex ones also tend to be less adaptable to the ever-changing market that is the currency market. The more simple Forex trading strategies on the other hand, work more effectively in general, as not only are they easier to understand and carry out, but they are also far easier to adapt and change. There's no real need to complicate things as Forex trading is difficult already and you will only be making things even more difficult by choosing a strategy that is difficult to understand, use and adapt.
Of course if you are a more experienced Forex trader, you will be able to develop your own trading strategy that might be very complex indeed, but until you are an experienced trader, you should stick with what works. The more experienced currency traders can get away with more complex trading strategies, since they can develop their own, meaning that they actually understand their the strategies that they use and know how to adapt them in the future. After all, your trading strategy should be yours and yours only, really. Of course, you will most likely want to use a well-known one to form a basis for your own strategy, but you shouldn't copy (or worse, buy) other Forex trading strategies ready-made because there just isn't any real logic to this at all.
Currency trading strategies tend to develop over time naturally, among traders and investors. As already mentioned, Forex trading is all about trial-and-error learning and if at first you don't succeed, try and try again. Also, even if you do eventually develop a profitable trading strategy, always be looking to test out other ones using demo accounts for example, because the conditions of the FX market are ever-changing and you need to be dynamic, if you want to be a profitable Forex trader. Unfortunately you will never know everything there is to know about Forex trading and even if you do start to profit, if you stand still you will start to go backwards.
In conclusion, your Forex trading strategy should be simple and not complex, because if it is simple you will stand more of a chance of understanding it. Simple currency trading strategies also tend to be easier to adapt to the ever-changing conditions of the market for currencies, allowing you to become a more dynamic Forex trader. Also lastly, regardless of whether you are making losses or deducing profits; always look to try new things in the Forex market and always be eager to learn more, because what works for you today might not work tomorrow. You want to aim to be a successful Forex trader in the long run and not just in the short run.
The problem is, we generally tend to be more impressed by complexity rather than simplicity. If a beginner reads up on a complicated trading strategy that they can hardly begin to understand, they immediately presume that the strategy in question will allow them to deduce significant profits, or at least more profits than other strategies that are less complicated. In reality, it doesn't matter how complex or sophisticated a particular strategy is or sounds; as long as you understand your trading strategy and it actually does work when you put it to use, then you should continue to use it no matter what. If your currency trading strategy doesn't work, then change parts of it and adapt it. Forex trading is ultimately all about trial-and-error learning, so don't lose your confidence if you make a bad start; you should just persevere until you actually find a strategy that does work. Unfortunately many beginners don't persevere and this is one of the main reasons why Forex traders fail.
Really, it's pointless using a strategy that you don't even understand, in the Forex market. In fact Forex traders, especially beginning ones, tend to fail when using more complex trading strategies. This is because not only do they struggle to understand them and get confused, but the more complex ones also tend to be less adaptable to the ever-changing market that is the currency market. The more simple Forex trading strategies on the other hand, work more effectively in general, as not only are they easier to understand and carry out, but they are also far easier to adapt and change. There's no real need to complicate things as Forex trading is difficult already and you will only be making things even more difficult by choosing a strategy that is difficult to understand, use and adapt.
Of course if you are a more experienced Forex trader, you will be able to develop your own trading strategy that might be very complex indeed, but until you are an experienced trader, you should stick with what works. The more experienced currency traders can get away with more complex trading strategies, since they can develop their own, meaning that they actually understand their the strategies that they use and know how to adapt them in the future. After all, your trading strategy should be yours and yours only, really. Of course, you will most likely want to use a well-known one to form a basis for your own strategy, but you shouldn't copy (or worse, buy) other Forex trading strategies ready-made because there just isn't any real logic to this at all.
Currency trading strategies tend to develop over time naturally, among traders and investors. As already mentioned, Forex trading is all about trial-and-error learning and if at first you don't succeed, try and try again. Also, even if you do eventually develop a profitable trading strategy, always be looking to test out other ones using demo accounts for example, because the conditions of the FX market are ever-changing and you need to be dynamic, if you want to be a profitable Forex trader. Unfortunately you will never know everything there is to know about Forex trading and even if you do start to profit, if you stand still you will start to go backwards.
In conclusion, your Forex trading strategy should be simple and not complex, because if it is simple you will stand more of a chance of understanding it. Simple currency trading strategies also tend to be easier to adapt to the ever-changing conditions of the market for currencies, allowing you to become a more dynamic Forex trader. Also lastly, regardless of whether you are making losses or deducing profits; always look to try new things in the Forex market and always be eager to learn more, because what works for you today might not work tomorrow. You want to aim to be a successful Forex trader in the long run and not just in the short run.
High Probability Forex Strategy - Trade Forex With This Simple Strategy
Forex trading strategies involve the combination of chart indicators as well as chart price patterns in order to derive forex entries and exists. There are also fx trading strategies based on fundamental factors, but all short term strategies must include some technical trading component. The below strategy uses simple moving averages to trigger entries (both long and short positions) as well as exit points. It can also be used to have continuous position in the market (to catch big moves.) This is a purely technical forex strategy which can be combined with your own judgment and fundamental factors to increase success.
Chart Time Frame:
This strategy is effective on a 30 minute or hourly chart. However the time frame can be changed to cater to your own trading style.
Chart Indicators needed:
9 SMA (on close)
100 SMA (on close)
Trade Entries:
New long entries - When the 9 SMA indicator line crosses above the 100 SMA
New short entries - When the 9 SMA indicator line crosses below the 100 SMA
Trade Exits: Close a trading position or reverse the position when the 9 SMA crosses back across the 100 SMA.
Before you begin your forex trading venture, it is important to learn the basics of how currency trading and forex works. Of course, encyclopedic knowledge could not be enough (and updated) so you really need help to get you through online trading for foreign exchange. Learning about the forex online trading can help one to become a successful foreign exchange trader.
Chart Time Frame:
This strategy is effective on a 30 minute or hourly chart. However the time frame can be changed to cater to your own trading style.
Chart Indicators needed:
9 SMA (on close)
100 SMA (on close)
Trade Entries:
New long entries - When the 9 SMA indicator line crosses above the 100 SMA
New short entries - When the 9 SMA indicator line crosses below the 100 SMA
Trade Exits: Close a trading position or reverse the position when the 9 SMA crosses back across the 100 SMA.
Before you begin your forex trading venture, it is important to learn the basics of how currency trading and forex works. Of course, encyclopedic knowledge could not be enough (and updated) so you really need help to get you through online trading for foreign exchange. Learning about the forex online trading can help one to become a successful foreign exchange trader.
Unsecured Line of Credit for Your Bed Credit Term
There are many loan applicants that should go back empty handedly as their loan requests have been rejected by the lenders due to the bad credit terms that will never happen in online loan service that provides them Unsecured Line of Credit towards the clients whose credit is considered low. However, the risk of having the unsecured business loans is that the borrowers should be ready with higher interest rate that should be paid in the end. Such high interest rate of the business financing is based on the assumptions of the existences of certain delays in payment and so forth.
Although such Unsecured Business Line of Credit can be quite helpful for your bed credit term, consideration towards the business loan rates is needed. You have to think twice before you accept the business lines of credit by seeing your capability in terms of payment as when you don’t wise enough to think about it you might end up getting further problem as you need to pay even higher for the loan.
It is better that you have good credit term so that you can take secured small business loans instead of Unsecured Business Loan which is easier for you to pay as the interest rate is not as much as the unsecured ones.
Get a lot of Photo Effects from Photofunia
Do you want to make your photos more interesting than before? Is it really hard for you to learn all techniques in Photoshop, and you are wondering whether you can edit your photo instantly without doing complicated technique? If you so, then you should be very happy now, because photofunia offers the easiest way to edit your photos. There are not difficult techniques like Photoshop are required here. All the techniques can be done instantly, and the result will be just as good as the result of photos that has been photoshopped. If you are interested, then you are suggested to visit en.picjoke.net. This site has all you need to edit your photo very easily and very quickly.
The most important thing is that this site provides a lot of kinds of photo effects that you can choose based on your interest. If you want to have gif animations photos effects for your photo, then this site will provide you funny photo effects gif animations with various effects. You can choose all effects you want, and then make it as your photo effect. Besides, you can also get so many kinds of funny photo effects jpg with various effects, such as funny photo effects halloween, and many more.
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